2018 PRESENTATION OF TENANT SURVEY RESULTS. Amy Erixon Principal and Managing Director, Avison Young

Transcription

1 2018 PRESENTATION OF TENANT SURVEY RESULTS Amy Erixon Principal and Managing Director, Avison Young

2 Top 5 Reasons This Report & Dashboard Matter 1. CUSTOMER SERVICE BENCHMARKING Google Reviews and Social Media Management and Internal Quality Control 2. CAPITAL EXPENDITURE MANAGEMENT Pay Back Calculation, Prioritization of Improvement, Customer Service / Rental Fixes 3. MARKET RENT COMPARISON AND BENCHMARKING Revenue Management, Market Suite Comparison, Ability to Segment Renters and Budgets 4. PROPERTY MANAGEMENT AND SERVICE PERFORMANCE Better Service for Tenants and Understanding of Issue, Insights on Communications Preferences 5. AMENITY, TECHNOLOGY AND PREFERENCE VALUE ANALYSIS Creating Value for Development and Repositioning in Addition to Existing Property Improvement Programs

3 2018 Report Card A+ - Focus on Green / Technology / Operations / Development A+ - Once Again Involve Industry in Questions Providing New Insights B+ - Increase Geographic Reach C+ - Increase Condo Tenant Respondent Base in 2018 BONUS: Price Indication For Amenities, Technology, Sustainability and Preferences

4 New Excel Interface Allowing for Easier Analysis Speak to to purchase your copy of the trends report & dashboard and filter the responses in this report by age, income, rent, geographic area, pets, dependents, future plans etc.

5 2018 Macro Updates 2018 Data Includes: Larger Response Group Values Prescribed For Amenities and Features More Forward Looking Questions Responses From Over +12,000 Canadians Responded 70% Completion Rate Worked alongside Gold Sponsors Participating Companies Various Channels More Questions Also On Technology, Automation, Comfort Integration of these systems in rental units

6 Geographic Make-Up 21% 5% or Less Toronto 16% Edmonton 14% Ottawa 9% Calgary Brampton Burlington Cambridge Grande Prairie Guelph Halifax Hamilton Kingston Kitchener London Mississauga Montreal Oakville Other Red Deer Regina Saskatoon Vancouver Victoria

7 CANADIAN RENTER STATISTICS

8 Type Of Rental Surveyed Interesting Facts: Condo Tenants: Vancouver 29%, Calgary 16%, Edmonton13% and Toronto10%. Purpose Built Rental Properties Built >5 Years Old: Toronto 73%, Edmonton and Calgary 55% and Vancouver 53 %.

9 Household Make-Up Households? 33% Single (25% 2017) 42% 2 People (40% 2017) 24% 3+ People (21% 2017) Dependants? 17% - 1 Dependant (16% 2017) 17% - 2+ Dependants (21% 2017) 66% - 0 Dependants (60% 2017) Relationship? 37% Single (30% 2017) 44% Married/Common Law (50% 2017) 13% Divorced/Separated (11% 2017) Employment 58% Employed Full Time (67% 2017) 59% Above $50K HH Income 41% Under $50K HH Income

10 Demographic Findings Gender? 58% of Overall Female Respondents Age? 33% Years Old 40% Years Old 27% Years Old Move In Year? 12% % % - Before 2014 Type? 64% > 5 Yr Apt 9% Condo 26% Other Pets? 45% Own a Pet

11 Surprising Renter Profile Findings 49% of Canadians Surveyed Rent 2+ Bedrooms 78% of Those Surveyed Have 1 Bathroom 71% Require A Bathtub 58% have dependents under the age of 20 41% under age of 10 Would Not Rent Without Washer/Dryer in Building Elevator Access Designated Parking Space Parking Lot Essential + Nice To Have Soundproof Walls Washer Dryer in Unit Patio/Balcony High Speed Internet

12 2018 NEW FINDINGS

13 2018 New Questions Select Examples New Perspectives and New Results to Guide Your Decisions Many more preference and amenity additions for ranking and allocating value How much would tenants pay for features and amenities Did the building amenities attract you and do you use them? If you had two bathrooms what set up would you prefer? Can premium shared outdoor space replace need for balcony? Preference on controlling unit with Google Home etc. Comfort level with Amazon key and the like Questions around electric vehicles, ownership and preferences What are your reasons for renting versus owning? Why have you chosen select type of rental? What year/month did you move in? Do you worry the owner of your condo will sell their unit? Ratings for current condition of building and rental Management change and service level changes

14 Focus on New Build and Bathrooms Worry Condo Owner Will Sell? Yes - 17% (V-64%, T-32%) No 83% (E-92%, C-91%) 2 Bathrooms? 22% Had +2 Bathrooms 41% want 1 full & 1 powder room 36% 2 full and 24% do not care Did Amenities Attract You? 65% Condo Yes 78% Purpose Built Rental Yes Value of an Extra Bathroom? 34% Said $0; 38% Said $50- $150; 9% Said $25-$50; 5% Would pay $300+ Do You Use the Amenities? 76% Condo Yes 81% Purpose Built Rental Yes En-Suite? 24% Essential - 54% Nice to Have 42% would pay extra for en-suite Shower or Tub In 1 Bathroom? 71% shower/tub, 15% just shower

15 Focus on Balcony and E-Commerce 46% Balcony is Nice to Have 43% Balcony is Essential, Would Not Rent Without 11% Does Not Matter 40% want private balcony 39% like shared space but prefer balcony 15% do not care & 5.5% prefer shared space (When you filter for age it matters) Pay More For a Patio/Balcony? 25% Would pay $1-$25/mth 25% Would pay $25-$100/mth 79% Shop Online Where are orders delivered to? 78% Their Rental, 19% Pick-Up Center, 16% Work, 9% Friend/Family 8% Originating Store, 4% Other Is There Sufficient Storage Space / Systems For Packages? 54% NO 46% YES 40% would feel comfortable with Amazon Key 49% for those under 30 & 27% for those over 50 (Roughly same for Google Home)

16 Focus on Electric Vehicles 1% have an electric vehicle Most of these in Vancouver 7% of tenants said their building had charging stations 11% plan to buy one In next 1-3 years 4% said their building provides priority parking for electric vehicles 2% of tenants said a charging station was essential they would not rent without 7% said they would pay $1-$25 for charging stations. 3% said they would pay $26-$50 more a month

17 Energy Certified Building Value 80.0% 75.8% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 17.1% 9.5% 4.4% 1.7% $0 $1-$25 $26-$50 $51-$100 $101-$500+

18 What Would People Pay More For Per Month? In-Suite Laundry $25-$38 Kitchen Renovation $19-$30 Bathroom Upgrade $22 New Building $21 Hardwood Floors $20 Designated Parking Spot $18 Smart Thermostat $17 Stainless Steel Appliances $16 Common Area $12

19 DECISION PRIORITIES

20 Why Rent Where? 1 Grocery Store 2 Near Outdoor Space / Park 3 Bus Station 4 Retail and Restaurants 5 Close to Work Interesting Facts: In Toronto the order changes to: Grocery Store, Bus/Streetcar, Subway, Park/Outdoor Space, then Place of work. In Edmonton the order changes to: Grocery Store, Bus/Streetcar, Place of Work, Park/Outdoor Space, Children s School

21 Reasons for Renting Vs. Owning? Hassle-free Lifestyle Flexibility Of Being Able To Move Like The Neighborhood But Can t Afford To Purchase Saving For A Down Payment Not Ready To Own 2017 Change Interesting Facts: 34% of respondents would prefer a rental in a new purpose built rental 24% of respondents said they prefer a house / townhouse 14% of respondents said they prefer a condo

22 What % Of Your Income Do You Pay In Rent? Kingston 38.3% Ottawa 35.3% Vancouver 34.0% Toronto 33.9% Edmonton 32.3% Calgary 31.3% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% Percent

23 Current Monthly Rent Current Rent Toronto Edmonton $1,001-$1,500 48% 59% 45% 68% $1,501-$2,000 26% 20% 37% 8% < $1,000 17% 16% 7% 24% > $2,001 9% 6% 12% 0% Key Findings: Largest Grouping was $1,100 nationally and the largest group jumped to $1,350 when filtered for Toronto only

24 Top Current Monthly Rent Breakdown By City $1,650 at 8% Vancouver (CMA) $1,450 at 6% Toronto (Metro) $1,200 at 10% Edmonton $1,050 & $1,200 at 11% Calgary $1,350 at 11% Other $1,050 at 9% Kingston $1,050 at 9% Ottawa $950 at 18% London

25 What Would Your New Budget Be If Looking Today Budget Canada Toronto Edmonton $1,001-$1,500 47% 47% 53% < $1,000 35% 17% 42% $1,501-$2,000 14% 27% 4% > $2,001 4% 9% 0% Interesting Facts: 59% pay $1,000 - $1,500 a month versus 47% budgeted 20% pay $1,501 - $2,000 a month versus 14% budgeted 16% pay <$1,000 a month versus 35% budgeted 6% pay $2,000 + a month in rent versus 4% budgeted

26 Direct Comparison Current to Budget Rent 70% 60% 50% 40% 30% 20% 10% 0% < $1,000 $1,001-$1,500 $1,500-$2,000 > $2,000 Budget Rent Current Rent

27 How Many Cars Toronto Edmonton 1 50% 58% 49% 62% 0 40% 29% 44% 23% 2 9% 12% 7% 14% 3 1% 1% 1% 1% Interesting Facts: 44% of respondents in Toronto reported not owing a car down from 51% last year 44% of renters in Vancouver reported not owing a car down from 48% last year

28 Commute Method To Work/School TOP THREE 49% Drive 29% Public Transit 11% Walk BOTTOM THREE Interesting Facts: 78% said that living close to work was important to them 26% said that living close to work was so important to them, they would not rent without 1.9% Bike 0.5% Uber (Ahead of Taxi) 0.4% Taxi Source: Nata Metlukah,

29 Commute Time Time mins 29% 31% mins 28% 31% mins 21% 17% mins 12% 12% mins 8% 9% Those with dependents spent more time on the road than those without 27% for those between 0-10 mins, 13% for those between mins and 11% for those between mins Source:

30 RENTAL MARKET DYNAMICS

31 Time To Find Your Rental Actual Time to Find Rental Time Line < 1 month 54% 61% 1-2 months 32% 23% 2-6 months 10% 14% How Far In Advance Do You Start Looking? Time Line 2018 < 1 month 7% 1-2 months 22% 2-6 months 33% > 6 months 4% 2% > 6 months 7% Interesting Facts: Vancouver - 40% taking <1 month down from 2017 (55%) Toronto 52% of respondents took <1 month up 2% from 2017 and 27% took 1-2 months down from 35% in % from Calgary and 69% from Edmonton took <1 month to find their rental

32 Rental Condition How would you rate the current condition of your Unit / Building 43% 42% Average 29% 30% Above Average 15% 14% Excellent 10% 10% Below Average 3% 3% Poor 1% 1% In Total Disrepair

33 Management/Owner/Landlord Rating Do they have on-site property managers? 85% Yes 15% No Rating the level of service from on-site property manager? 25% Very high quality 39% High quality 27% Neither high/low 7% Low Quality How likely to recommend to Friends your Landlord/Owner/Manager 32% Rated their satisfaction between % Rated their satisfaction between % Rated their satisfaction between 1-5 Satisfaction Level with Landlord/Owner/Manager 29% Rated their satisfaction between % Rated their satisfaction between % Rated their satisfaction between 1-5 3% Very Low Quality

34 Value To Being Fully Satisfied Does their rental fully meet their needs? 67% Yes 33% No If they paid more rent to have a renovated unit, would they be fully satisfied? 85% Yes 15% No Would they pay more rent for work to be fully satisfied? 56% Would pay more 14% Would pay $50 10% Would pay $100 5% Would pay $10, $20, or $25 With minimal upgrades would the unit they are renting meet their needs? 71% Yes 29% No

35 Needs Analysis What is the reason their rental does not meet their needs? 32% Lack of Space 31% Lack of Appliances 25% Other 11% Lack of Service 2% Location Do the number of bedrooms meet their needs? 75% Yes 18% No I cannot afford more rent 8% No I am actively looking to move for more bedrooms How much is an extra bedroom worth? Only 9% said $0 23% Said $100 a Month 12% Said $50 or $200 a Month 10% Said $150 a Month 2 Bedroom 1,132 sf; Georgetown Crossing, Savannah GA

36 Purchase Plans a House or Condo? 22% Do not want to be a home/condo owner 19% In the next 6-12 Months 41% In the next 5 years 7% In the next 10 years Already purchased and waiting to move in 4% In the next 6 month Will consider a unit but longer than 10 years 69% of respondents said they were not planning to move in the next 12 months.

37 UNIT / BUILDING FEATURES

38 86 Preferences and Amenities Surveyed Bathtub (versus shower only) Color Changing LED lighting Device Charging Stations En-Suite Bathroom Garbage Disposals in unit (Garburators) Gas Stove Heated Floors High Speed Internet Access Abundant natural light Designated parking place Carpets Wood or plank flooring Updated kitchen with stone counters, newer appliances, ample counter space In-Suite Storage room Open plan Kitchen-Living-Dining In-Unit Speaker/Sound System Lower Accessible Kitchen/Bathroom Counters Elevator access Storage unit close to rental suite Storage outside of rental suite Microwave Non-Key Secure access Non-smoking building Patio or balcony Refrigerator with ice dispenser Shower Support Bar Smart Thermostats Wide Corridors Soundproof Walls Air barriers so smells do not enter common areas and other people's suites Walk-in closet Washer/Dryer in Unit Washer/Dryer in Building Large Laundry Room Wider Doorways New Building Guest parking Garbage Shute so you don't have to walk it to a bin Additional Storage space outside of unit space BBQ for Tenants Use Private BBQ's Bike sharing Convenient, secure bike parking in the building Building Events and Socials Building Digital Portal for Communications and social functions Business Center Car sharing Common Lounge Conference Rooms / meeting space Party Room Daily, Weekly, Monthly Housekeeping Daycare in Building Daytime concierge 24 hour concierge Ability to receive packages during work hours Ability to receive packages 24 hours a day Designated Uber Drop off and pickup areas Designated outdoor dog area Dog grooming Dog treats in lobby Dog walking Dog washing stations Dry cleaning pick-up and delivery Winter and Summer tire change Car Washing Station Energy efficient lighting Energy certified buildings (LEED, Well Building Standard etc.) Fitness Classes Fitness Facilities Games Room Guest Rooms Indoor common areas Outdoor common areas Outdoor playground Grass space outdoors Parcel delivery service Parking lot Electric Car/Motorcycle charging stations Personal Shopping Services Personal trainer available to tenants Private Bathrooms in co-sharing living space Sauna/Spa Security Guard and/or System Toddler/Family Room Tri-Slot Garbage (Compost/Recycle/Garbage) Valet Parking

39 Essential Would Not Rent Without Features 53% Washer Dryer in Building 51% Elevator Access 45% Designated Parking Space 44% Parking Lot 43% Patio or Balcony 43% High Speed Internet 34% Abundant Natural Light 32% Soundproof Walls 29% Guest Parking 29% Washer/Dryer in Unit Interesting Facts: 2017 had high speed internet, patio/balcony and soundproof walls as the top three In 2018 we combined our lists into one macro list more choices were present showing real preference choices Smart Thermostats rated 7.5% for essential but 60% for important this is up from 5% and 50% respectively in 2017 For Families (Dependent under 15) Designated Parking Space moved to #2 and non-smoking building moved to #8

40 Essential But Will They Pay? AMENITY / FEATURE $0 $1- $25 $26- $50 $51- $100 $101- $200 $201- $300 Low High Average Washer/Dryer In Building Elevator Access Designated Parking Space Parking Lot Patio/Balcony High Speed Internet Abundant Natural Light Soundproof Walls Guest Parking Washer/Dryer In Unit

41 Features Not Considered Important 87% Valet Parking 86% Dog Grooming 84% Dog Treats In Lobby 82% Dog Walking 81% Dog Washing Station 80% Color Changing LED lights 79% Electric Car Charging Station 78% Toddler/Family Room 77% Car Sharing 77% Business Center Interesting Facts: Car Sharing and Business Centers, top features among urban US renters are not as important to Canadians Families with children less than 15 years old value Toddler/Family rooms higher

42 Top 10 Essential + Nice To Have 90% Soundproof Walls 90% Washer in Unit 89% Patio or Balcony 89% High-Speed Internet 89% Guest Parking 88% Abundant Natural Light 88% Air Barriers 84% Parking Lot 83% Elevator Access 82% Washer Dryer in Building Interesting Facts: Washer Dryer falls to #10 from #1 Soundproof walls moves from #8 to #1 Designated Parking Spot vanishes Microwave drops off the list from it s #3 spot Air Barriers moves from off the list to 7th

43 OPERATIONS & TECHNOLOGY

44 Service Requests and Satisfaction Generally satisfied with the outcome of service requests? 54% Highly Satisfied % Satisfied % Unsatisfied 1-3 Did you experience a management change in rental period and if so did you notice a difference? Interesting Facts: 21% rated their level at 10, and 5% at 1 showing a generally satisfied grouping 76% noted they only submitted a service request once for any one issue 69% No Change in Management 19% Yes Positive Change 12% Yes Negative Change

45 Current And Future Communications How Do You Currently And Want To Communicate With Your Landlord Method Current Want In Person 38% 17% Phone 22% 12% 19% 38% Flyer Under The Door 6% 9% Property Specific Digital Web Page / Newsletter 5% 4% Poster In Building 3% 2% Text Message 3% 7% Written Letter Mailed 1% 4% Other 1% 1% An App 1% 5% Internet/Social Media 0% 1% Monthly Newsletter 0% 1%

46 How Did You Find Your Rental? Source Online Listing Service 35% 31% Directly From Building (2017) / Company Web Site (2018) + Posting In/On Building (2018) 28% 19% + 8% Friend 22% 21% Other 9% 16% Newspaper 4% 3% Broker/Realtor 2% 1% WHICH SITE? 2018, 41% found on Kijiji versus 45% in 2017 and Viewit dropped to 9% from it s 2017 figure or 20%. Notably Other received 32% of the vote in 2018.

47 Do Company Web Sites Matter? Yes, And It Made A Positive Impression On Me 52% Yes, And It Didn't Influence My Decision At All 21% No, And It Is Not Important For Me 20% No, Because They Didn't Have One - But I Wish They Did 6% Yes, And It Made A Negative Impression On Me 1%

48 Payment and Technology How do you Currently Pay Your Rent? How Would You Like To? Method Prefer Online Debit Payment 47% 53% 45% Bank Transfer 15% 8% 16% Credit Card 13% 1% 14% In Person 11% 7% 6% Other 7% 4% 6% Debit Card 5% 8% 7% An App 4% 1% 7% Text 0% 0% 0% Cheque N/A 17% N/A Cash Handed To Landlord N/A 0% N/A

49 Community Portals Does Your Rental Have A Community Portal? 56% YES 44% NO Do You Use Your Online Community Portal? 54% YES 46% NO Would Your Use An Online Community Portal? 50% YES 50% NO

50 Parking Insights Do You Have Parking In Your Rental? 71% Yes, I Have A Designated Spot 21% No, I Don t Have Parking Because I Don t Need It 7% Yes, I Have An Open Parking First Come First Serve 2% No, I Don t Have Parking And My Rental Does Not Offer It Source:

51 Parking Rates Monthly Amount How Much Do You Pay For Parking? Canada Toronto (CMA) Edmonton (CMA) $0 33% 18% 40% $5-$20 3% 1% 5% $20-$50 28% 19% 40% $50-$100 29% 49% 13% $100-$150 5% 11% 2% $150-$200 1% 2% 1% $ % 1% 0%

52 Conclusions

53 2018 Conclusions Key Findings: Small $ Big Impact: Wi-Fi, Designated Parking, Smart Thermostats Medium $$ Big Impact: In-suite Laundry, shared Balcony / Deck Big $$$ Impact: Additional Bedroom and Bathroom, Kitchen Renovation Growing Affordability Gap Outside of Vancouver and Toronto, Parking Still Matters and Tenants Increasingly Willing To Pay Management and Websites Matter

54 Sample Questions in 2018 LANDLORD SATISFACTION If you are currently a tenant, what is your level of satisfaction with your landlord/manager/owner? How likely would you be to recommend your landlord to a friend or colleague? How can your landlord improve your customer experience? Does the unit you are renting now fully meet your needs? If you answered NO to the question above, what is the main reason why? If you have lived in your rental home for more than one year, what are the top two reasons that you have stayed? If you are planning to terminate and move apartments, could your landlord convince you to stay? AMENITIES, FEATURES, LOCATION, SIGNING FACTORS If you were to rent a unit with only one bathroom would you (require a bathtub, prefer a large shower etc.)? Would you be willing to pay more rent, if any of the following were upgraded in your current rental Home? Is there sufficient parking at your rental? How important are the following amenities/features/proximity Options//Signing Factors to you? (In depth list of choices from which they choose Essential (would not rent without), Important, Not Important)? If you have a concierge, is it important for them to accept packages? FUTURE PLANS If you are looking to move in the next 12 months, do you anticipate your monthly carrying costs to: (up, down etc.) If you are looking to purchase a home, when do you anticipate doing so? In the next 12 months, do you plan on: (Staying in the same rental home, moving into a rental condo etc.)? TECHNOLOGY Does your building have an online community portal that allows you to plan and attend social events and network with residents? Is it important for you to engage with your rental community over the following services? (various choices provided) Ideally, how would you like your management company / landlord to communicate with you on issues or items affecting your community and/or rental unit? (various choices provided) In renting your latest unit, did you visit the company website ahead of time? If you had your choice, would you rather submit a service request by: (various choices provided) Would you prefer to pay your rent with: (various choices provided)? Please remember the above is a sample of the 120 questions that were asked and answered

55 What Does The Dashboard Offer Segment specific tenants against the market Landlord Benchmarking Portfolio or building compared to market Tailor the data to your needs filter for age, income, rent, geographic area, dependants etc Figure out how much tenants will pay for select amenities, features and preferences Some 120 question asked and answered in 2019

56 2018 Survey Data Purchase Interested in purchasing the dataset? White Paper $2,500 Dataset and Interactive Database - $5,000 Plus applicable taxes Please sarah.segal@informa.com to inquire about purchasing

57 Thank You To Our Sponsors Presenting Sponsor Gold Sponsors CAPREIT GREENROCK GWL / VERTICA HOMESTEAD MINTO RPMS STARLIGHT VERTICA